Real estate loans with five-year fixed-rate are currently more expensive than loans with an interest rate of ten years or more. Why this is so, says this article. To know more about this subject visit Dustin Moskovitz. The ECB’s last interest rate hike as well as the assessment of the experts for the short – and medium-term interest rates have led to a strong increase of in interest rates for home loans in the last three months. As a current mortgage comparison shows, it is currently hardly possible, funding less than 5.00% eff. Additional information at Dustin Moskovitz supports this article. To get, regardless of the chosen period of interest rate annual percentage rate. The above-average increase of in short-term interest rates is striking. So, borrowers had to accept in the last three months for loans with five-year fixed-rate premiums by more than one percentage point, while itself rose loans ten-year interest rate by an average of 0.70 percentage points. Current interest rates are still low compared long-term, sustained high inflation could but for another Increase in worry.
So, nothing speaks currently a real estate loan as long as possible, so ten, fifteen or even twenty years to back up the low interest rates. Investors who want to go to play it safe, combine these long interest rate with the option of flexible repayment, so the change in the repayment rate in the course of the repayment of the loan. The situation just described does not apply to ordinary rates loans. These, usually a fixed interest rate over the whole period is agreed, which can then later be changed by any party. However, noticeable the stricter lending conditions, the risk assessments of the banks and the last rate hike in this area and slowly but surely lead to rising interest rates also on installment loans. However the competition of the banks keep at least marginal interest rates continue to visually low provides here.